This calculator will compute the CIS tax deductions. An easy-to-use calculator with advice to help you deduct the correct
CIS tax.
Contractors can use this CIS tax deduction calculator to determine which deductions to take.
It includes all CIS computations, including 30%, 20%, and 0% tax rates.
We've included some helpful hints to ensure contractors use the calculator correctly.
To ensure that our CIS tax deduction calculator is effectively used, we have provided some helpful advice on each element of the calculator below.
The subcontractor's CIS status informs the contractor of the applicable CIS tax rate. There are three types of rates:
gross, net, and not registered.
HMRC provides the deduction tax rate. This is done when the subcontractor verification is finished.
The VAT rate charged should be stated on the invoice issued by the subcontractor. In the construction business, there is an additional difficulty in that some invoices are classified as reverse VAT. If you need clarification, use our VAT Reverse Charge Construction Solver to determine whether reverse VAT applies.
The invoice should break down the cost of work and materials. This is a requirement unless the subcontractor is
registered with gross payment status.
It is critical to determine the qualifying items before using the CIS tax deduction calculator. In the materials box,
only input qualifying materials. The remainder is added to labor.
Travel and lodging expenditures, for example, are not qualifying elements and should be added to the labor value.
After inputting the amounts above, double-check that the Net, VAT, and Gross figures match the invoice.
The CIS tax deduction calculator will determine how much CIS tax can be deducted. This sum is due to HMRC on the
monthly return.
The final figure is the sum to be paid to the subcontractor. If CIS tax has been deducted, the contractor must
present the subcontractor with a payment and deduction statement.